Medical technologies developer C.R. Bard Inc. will acquire Medafor Inc., a maker of plant-based hemostatic agents that stop bleeding, for $200 million, a deal the New Providence company said will expand its reach in the growing market for surgical hemostats.
The deal includes future contingent payments up to an additional $80 million based on specific revenue-based milestones through June 30, 2015, according to a news release today.
C.R. Bard, in the Murray Hill section of the borough, said acquiring Medafor's proprietary technology platform will expand its participation in the global market for surgical hemostats, estimated to be valued at $1.4 billion. Specifically, the acquisition is expected to increase business opportunities for surgical specialties in its Davol subsidiary.
"This technology platform represents an important building block for our surgical specialty product offering and provides a global footprint for continued expansion," C.R. Bard CEO Timothy Ring said in a statement.
Minneapolis-based Medafor markets the Arista MPH Hemostat, an adjunctive agent that controls bleeding when conventional means are ineffective. Surgical hemostats are used to control bleeding in order to reduce hemorrhage. The products also help reducing postoperative complications and the potential for costly transfusions.
C.R. Bard said Medafor's Arista platform derives from a plant-based technology that is safe, effective and can be used in various surgical procedures. In addition, C.R. Bard said Medafor has a robust pipeline of potential future products.
Ring said the Arista hemostat is easy to use and provides an alternative to other commercially available hemostats. Ring said the deal also complements C.R. Bard's existing Progel Sealant technology and sales channel.
The deal is expected to close later this year. The transition is structured as a merger and has been approved by both companies' boards of directors, and is subject to an approval by Medafor's shareholders and customary regulatory review.
C.R. Bard makes medical technologies in the fields of vascular, urology, oncology and surgical specialty products. It reported 2012 revenue of $2.96 billion.
Reporter Tom Zanki is @BizTZanki on Twitter.